Banks must provide 1502 monthly reports containing credit status information for their PPP loans, whether or not the borrower made a payment that month. Banks must continue to report a PPP loan until the bank informs SBA that the PPP loan has been paid in full. A PPP credit should not be reported “fully paid” just because it has been transferred to another bank. If, after the FORGIVENESS of the ppp loan, there is no credit balance, the bank must declare the PPP loan as fully paid on the next SBA 1502 report it submits. If a credit balance is maintained after the PPP loan, the bank must report the reduction in the loan balance for the amount of the pardon on the next SBA 1502 report it submits and must repay the PPP loan balance in accordance with the requirements of the PPP program. Yes. The PPPL Facility allows each of the Federal Reserve banks to provide non-use loans to all SBA-approved PPP lenders to finance loans made by those lenders under the PPP program. Ppp lenders eligible for the SBA include banks, credit unions, financial institutions for community development, members of the Farm Credit System, SBA-licensed small business credit companies, and certain financial technology companies. 2. The lender`s agreement is only required for one of the following situations (unless otherwise specified in the loan documents): the notification confirms that there are no restrictions on the change of ownership if the PPP loan has already been repaid.
But this will rarely be the case. PPP borrowers want to get a full loan and don`t want to have to repay the loan. The SBA also stated that it was forbidden to favour processing time or prioritisation; and that banks should comply with their own guidelines, as well as existing federal and regional rules, such as Regulation O, when granting PPP loans to eligible bank insiders. The Federal Reserve has adopted a provisional final rule that will come into effect on April 22, 2020 and exempts certain PPP loans from the requirements of Section 22(h) of the Federal Reserve Act and the corresponding provisions of Regulation O. .